Hibbett Reports Fourth Quarter and Fiscal 2020 Results

  • Comparable Sales Increase 4.0% in Fourth Quarter and 5.3% in FY 2020
  • Fourth Quarter EPS of $0.34 and Non-GAAP Adjusted EPS of $0.51 Per Share
  • Full Year EPS of $1.52, essentially flat compared to $1.51 Per Share in Fiscal 2019, and Full Year Non‑GAAP Adjusted EPS of $2.33 Per Share, a 32% increase compared to $1.77 Per Share in Fiscal 2019
  • Fifth Consecutive Quarter of Comparable Sales Growth

BIRMINGHAM, Ala.–(BUSINESS WIRE)–$HIBB–Hibbett Sports, Inc. (NASDAQ/GS: HIBB), an athletic-inspired fashion retailer, today provided financial results for its fourth quarter and fiscal year ended February 1, 2020, and business updates.

Mike Longo, President and Chief Executive Officer, stated, “Our business continues to perform well as shown by the 4.0% comparable store sales performance in the quarter. The sales growth was made possible by the hard work and dedication of our team and their execution of our strategies. Our focus on the toe-to-head concept and the consumer experience is paying off. At the same time, we continue to improve our digital business, which accounted for 14.2% of the sales mix in the fourth quarter, setting a new record. Additionally, our City Gear acquisition continues to exceed expectations, both in store as well as on-line.

Mr. Longo continued, “The Coronavirus has injected a measure of uncertainty in the market. Like all retailers, we are monitoring the situation and taking the necessary steps to safeguard our customers, our employees, and our stockholders. Currently, we do not anticipate any material disruption to our supply chain during the first quarter. We have experienced a slowdown in demand this week. However, we believe we have ample liquidity and financial flexibility to navigate this period of uncertainty, while positioning Hibbett for future success.”

Fourth Quarter Results

Net sales for the 13-week period ended February 1, 2020, increased 2.3% to $313.0 million compared with $306.0 million for the 13-week period ended February 2, 2019. Comparable store sales increased 4.0% and this was the first quarter to include sales from City Gear. E-commerce sales represented 14.2% of total net sales for the fourth quarter. The increase in net sales was primarily attributable to the 37% increase in our e-commerce sales compared to last year’s fourth quarter. Sales were driven by strong results in footwear and connected apparel.

Gross margin was 31.5% of net sales for the 13-week period ended February 1, 2020, compared with 31.1% for the 13-week period ended February 2, 2019. The 46 basis point increase was principally due to lower occupancy costs as a percent of sales.

Store operating, selling and administrative (SG&A) expenses were 26.8% of net sales for the 13-week period ended February 1, 2020, compared with 25.5% of net sales for the 13-week period ended February 2, 2019. While SG&A expenses as a percent of sales increased approximately 130 bps, the current year expense included City Gear acquisition costs of $4.2 million. The acquisition costs included a charge of $3.3 million for an increase in the estimated valuation of two contingent payments based on an update to City Gear’s projected achievement of defined EBITDA thresholds. On an adjusted basis, comparable SG&A expenses increased 85 basis points to 25.3% of net sales for the 13-week period ended February 1, 2020, from 24.5% of net sales for the 13-week period ended February 2, 2019. This increase in adjusted SG&A was primarily driven by costs associated with the increase in e‑commerce sales.

Net income for the 13-week period ended February 1, 2020, was $6.0 million, or $0.34 per diluted share, compared with net income of $6.6 million, or $0.36 per share, for the 13-week period ended February 2, 2019. On an adjusted basis, net income for the 13-week period ended February 1, 2020, was $9.0 million, or $0.51 per share, compared with adjusted net income for the 13-week period ended February 2, 2019, of $10.5 million, or $0.57 per diluted share. The Company has not included the $0.05 reduction in EPS for executive compensation costs related to the former CEO’s transition in its non-GAAP add backs to net income.

For the quarter, the Company opened four stores, rebranded three Hibbett stores to City Gear stores and closed 23 stores, bringing the store base to 1,081 in 35 states as of February 1, 2020. Store closures primarily included underperforming stores but also included Hibbett stores rebranded to City Gear stores.

Fiscal Year Results

Net sales for the 52-week period ended February 1, 2020, increased 17.4% to $1.2 billion compared with $1.0 billion for the 52-week period ended February 2, 2019. Comparable store sales increased 5.3%.

Gross margin was 32.4% of net sales for the 52-week period ended February 1, 2020, compared with 32.6% for the 52-week period ended February 2, 2019. Including strategic realignment expenses primarily related to the $1.1 million gain on operating leases net of accelerated amortization on ROU assets offset by the exclusion of the $1.0 million amortization of an acquisition inventory step-up value, non-GAAP gross margin was 32.4% for the 52-week period ended February 1, 2020, compared to non-GAAP gross margin of 32.8% for the 52-week period ended February 2, 2019. Non-GAAP gross margin for the 52-week period ended February 2, 2019, excluded the $1.9 million amortization of an acquisition inventory step-up value.

Store operating, selling and administrative expenses were 26.9% of net sales for the 52-week period ended February 1, 2020, compared with 26.2% of net sales for the 52-week period ended February 2, 2019. SG&A expenses included $17.4 million and $4.3 million in City Gear acquisition costs for the 52-week periods ended February 1, 2020 and February 2, 2019, respectively. In addition, it included $2.0 million related to the Company’s strategic realignment plan for the 52-week period ended February 1, 2020, and $0.3 million related to severance costs for the 52-week period ended February 2, 2019. Excluding these costs, store operating, selling and administrative expenses were 25.2% of net sales for the 52-week period ended February 1, 2020, compared with 25.7% for the 52-week period ended February 2, 2019. The Company has not reflected a reduction in expense for the executive compensation costs related to the former CEO’s transition in our non-GAAP add backs to SG&A.

Net income for the 52-week period ended February 1, 2020, was $27.3 million, or $1.52 per diluted share, compared with $28.4 million, or $1.51 per diluted share, for the 52-week period ended February 2, 2019. On an adjusted basis, net income for the 52-week period ended February 1, 2020, was $41.9 million, or $2.33 per diluted share, compared with adjusted net income of $33.3 million, or $1.77 per diluted share, for the 52-week period ended February 1, 2019. The Company has not included the $0.18 reduction in EPS for executive compensation costs related to the CEO’s transition in its non-GAAP add backs to net income.

Balance Sheet and Stock Repurchases

Hibbett ended the fourth quarter of Fiscal 2020 with $66.1 million of available cash and cash equivalents on the consolidated balance sheet. As of February 1, 2020, the Company had no debt outstanding and $100.0 million available under its credit facilities.

During the fourth quarter, the Company repurchased 532,702 shares of common stock for a total expenditure of $14.1 million. Approximately $153.1 million remained authorized for future stock repurchases through January 29, 2022.

Fiscal 2021 Outlook

Due to the current uncertainty about the overall impact the Coronavirus will have on our businesses, the Company is not providing a full year outlook for Fiscal Year 2021 at this time. We hope to provide full year guidance in May, when we release our first quarter earnings for 2021.

Investor Conference Call and Simulcast

Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, March 20, 2020, to discuss fourth quarter and Fiscal 2020 results. The number to call for the live interactive teleconference is (212) 231-2920. A replay of the conference call will be available until March 27, 2020, by dialing (402) 977-9140 and entering the passcode, 21950927.

The Company will also provide an online Web simulcast and rebroadcast of its fourth quarter and Fiscal 2020 conference call. The live broadcast of Hibbett’s quarterly conference call will be available online at www.hibbett.com under Investor Relations on March 20, 2020, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and be available for replay for 30 days.

Hibbett, headquartered in Birmingham, Alabama, is a leading athletic-inspired fashion retailer with approximately 1,100 stores under the Hibbett Sports and City Gear brands, primarily located in small and mid-sized communities. Founded in 1945, Hibbett has a rich history of convenient locations, personalized customer service and access to coveted footwear, apparel and equipment from top brands like Nike, Jordan, Adidas, and Under Armour. Consumers can browse styles, find new releases, shop looks and make purchases online or in their nearest store by visiting www.hibbett.com or www.citygear.com. Follow us @hibbettsports and @citygear.

About Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures, including adjusted net income, adjusted earnings per share, adjusted gross margin and adjusted SG&A expenses as a percentage of net sales. Management believes these non-GAAP financial measures are useful to investors to facilitate comparisons of our current financial results to historical operations, forward looking guidance and the financial results of peer companies, as they exclude the effects of items that may not be indicative of, or are unrelated to, the Company’s underlying operating results, such as expenses related to the acquisition of City Gear and our strategic realignment plan. The costs related to the acquisition of City Gear include amortization of inventory step-up value, contingent earnout valuation updates and professional service fees and expenses consisting primarily of investment banking, legal and accounting fees and expenses. In future periods, such acquisition-related costs may include one or more of the following categories of expenses: (i) transition and integration costs, (ii) professional service fees and expenses and (iii) contingent earnout valuation updates.

While our management uses these non-GAAP financial measures as a tool to enhance their ability to assess certain aspects of our financial performance, our management does not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial statements. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial statements, allows for greater transparency in the review of our financial and operational performance. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.

For a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see the sections titled “GAAP to Non-GAAP Reconciliation” that accompany this press release.

Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future, including, but not limited to, such things as our Fiscal 2021 outlook, future capital expenditures, expansion, strategic plans, financial objectives, dividend payments, stock repurchases, growth of the Company’s business and operations, including future cash flows, revenues, and earnings, the impact of the Coronavirus on our business and other such matters, are forward-looking statements. The forward-looking statements contained in this press release reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to: changed in general economic or market conditions that could affect overall consumer spending or our industry; changes to the financial health of our customers; our ability to successfully execute our long-term strategies; our ability to successfully execute our strategic realignment and realize its expected benefits; our ability to effectively drive operational efficiency in our business; the potential impact of new trade, tariff and tax regulations on our profitability; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer demand for our products and manage our inventory in response to changing demands; increased competition causing us to lose market share or reduce the prices of our products or to increase significantly our marketing efforts; the impact of public health crises, including the coronavirus, or other significant or catastrophic events; fluctuations in the costs of our products; loss of key suppliers or manufacturers or failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner, including due to port disruptions; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; our ability to successfully manage or realize expected results from acquisition, including our acquisition of City Gear, and other significant investments or capital expenditures; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; risks related to data security or privacy breaches; our ability to raise additional capital required to grow our business on terms acceptable to us; our potential exposure to litigation and other proceedings; and our ability to attract key talent and retain the services of our senior management and key employees.

For additional discussion on risks and uncertainties that may affect forward-looking statements, see “Risk Factors” disclosed in our most recent Annual Report on Form 10-K and in our subsequent filings. Any changes in such assumptions or factors could produce materially different results. Forward-looking statements included in this release are made as of the date of this release. The Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

 

HIBBETT SPORTS, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(Dollars in thousands, except per share amounts)

 

13-Week Period Ended

 

52-Week Period Ended

 

February 1, 2020

 

February 2, 2019

 

February 1, 2020

 

February 2, 2019

 

 

% of

Sales

 

 

 

% of

Sales

 

 

 

% of

Sales

 

 

 

% of

Sales

 

Net sales

$

313,024

 

 

 

 

$

305,964

 

 

 

 

$

1,184,234

 

 

 

 

$

1,008,682

 

 

 

Cost of goods sold

214,281

 

68.5

 

%

 

210,865

 

68.9

 

%

 

800,783

 

67.6

 

%

 

679,947

 

67.4

 

%

Gross margin

98,743

 

31.5

 

 

 

95,099

 

31.1

 

 

 

383,451

 

32.4

 

 

 

328,735

 

32.6

 

 

Store operating, selling and administrative expenses

83,927

 

26.8

 

 

 

77,932

 

25.5

 

 

 

318,011

 

26.9

 

 

 

264,142

 

26.2

 

 

Depreciation and amortization

7,023

 

2.2

 

 

 

8,204

 

2.7

 

 

 

29,323

 

2.5

 

 

 

27,052

 

2.7

 

 

Operating income

7,793

 

2.5

 

 

 

8,963

 

2.9

 

 

 

36,117

 

3.0

 

 

 

37,541

 

3.7

 

 

Interest expense, net

(32

)

 

 

 

371

 

0.1

 

 

 

(211

)

 

 

 

(17

)

 

 

Income before provision for income taxes

7,825

 

2.5

 

 

 

8,592

 

2.8

 

 

 

36,328

 

3.1

 

 

 

37,558

 

3.7

 

 

Provision for income taxes

1,824

 

0.6

 

 

 

1,958

 

0.6

 

 

 

8,984

 

0.8

 

 

 

9,137

 

0.9

 

 

Net income

$

6,001

 

1.9

 

%

 

$

6,634

 

2.2

 

%

 

$

27,344

 

2.3

 

%

 

$

28,421

 

2.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.35

 

 

 

 

$

0.36

 

 

 

 

$

1.54

 

 

 

 

$

1.52

 

 

 

Diluted earnings per share

$

0.34

 

 

 

 

$

0.36

 

 

 

 

$

1.52

 

 

 

 

$

1.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

17,202

 

 

 

 

18,290

 

 

 

 

17,746

 

 

 

 

18,644

 

 

 

Diluted

17,574

 

 

 

 

18,470

 

 

 

 

17,957

 

 

 

 

18,826

 

 

 

HIBBETT SPORTS, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

 

 

February 1,

2020

 

February 2,

2019

Assets

 

 

 

 

Cash and cash equivalents

 

$

66,078

 

 

$

61,756

 

Inventories, net

 

288,011

 

 

280,287

 

Other current assets

 

18,423

 

 

25,813

 

Total current assets

 

372,512

 

 

367,856

 

Property and equipment, net

 

100,956

 

 

115,394

 

Operating right-of-use assets

 

229,155

 

 

 

Finance right-of-use assets, net

 

2,250

 

 

 

Goodwill

 

19,661

 

 

23,133

 

Tradename intangible

 

32,400

 

 

32,400

 

Other noncurrent assets

 

12,825

 

 

7,282

 

Total assets

 

769,759

 

 

546,065

 

 

 

 

 

 

Liabilities and Stockholders’ Investment

 

 

 

 

Accounts payable

 

$

131,662

 

 

$

107,315

 

Operating lease liabilities

 

60,649

 

 

 

Credit facilities

 

 

 

35,000

 

Finance/capital lease obligations

 

886

 

 

1,017

 

Accrued expenses

 

40,464

 

 

29,941

 

Total current liabilities

 

233,661

 

 

173,273

 

Long-term operating lease liabilities

 

190,699

 

 

 

Long-term finance/capital lease obligations

 

1,704

 

 

1,994

 

Other noncurrent liabilities

 

14,712

 

 

34,749

 

Stockholders’ investment

 

328,983

 

 

336,049

 

Total liabilities and stockholders’ investment

 

$

769,759

 

 

$

546,065

 

HIBBETT SPORTS, INC. AND SUBSIDIARIES

Supplemental Information

(Unaudited)

 

13-Week Period Ended

 

52-Week Period Ended

 

February 1,

2020

 

February 2,

2019

 

February 1,

2020

 

February 2,

2019

Sales Information

 

 

 

 

 

 

 

Net sales increase

2.3

%

 

14.7

%

 

17.4

%

 

4.2

%

Comparable sales increase

4.0

%

 

3.8

%

 

5.3

%

 

2.2

%

 

 

 

 

 

 

 

 

Store Count Information

 

 

 

 

 

 

 

Beginning of period

1,097

 

 

1,042

 

 

1,163

 

 

1,079

 

Stores Acquired

 

 

136

 

 

 

 

136

 

New stores opened

7

 

 

12

 

 

24

 

 

32

 

Stores closed

(23

)

 

(27

)

 

(106

)

 

(84

)

End of period

1,081

 

 

1,163

 

 

1,081

 

 

1,163

 

 

 

 

 

 

 

 

 

Stores expanded or relocated

 

 

1

 

 

9

 

 

10

 

Estimated square footage at end of period (in thousands)

6,102

 

 

6,542

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Information

 

 

 

 

 

 

 

Average inventory per store

$

266,430

 

 

$

241,004

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Repurchase Information

 

 

 

 

 

 

 

Shares purchased under our Program

532,702

 

 

3,900

 

 

1,564,642

 

 

757,186

 

Cost (in thousands)

$

14,114

 

 

$

66

 

 

$

34,904

 

 

$

16,124

 

Settlement of net share equity awards

 

 

 

 

29,432

 

 

18,765

 

Cost (in thousands)

$

 

 

$

 

 

$

555

 

 

$

416

 

HIBBETT SPORTS, INC. AND SUBSIDIARIES

GAAP to Non-GAAP Reconciliation (Dollars in thousands, except per share amounts) (Unaudited)

 

13-Week Period Ended February 1, 2020

 

 

 

Excluded Amounts:

 

 

 

 

GAAP Basis

(As Reported)

 

Acquisition(1)

 

Strategic Realignment(2)

 

Non-GAAP Basis

(As Adjusted)

February 1, 2020

 

 

 

 

 

 

 

 

 

% of

Sales

 

Net sales

$

313,024

 

 

$

 

 

$

 

 

$

313,024

 

 

 

Cost of goods sold

214,281

 

 

 

 

(764

)

 

215,045

 

68.7

 

%

Gross margin

98,743

 

 

 

 

(764

)

 

97,979

 

31.3

 

 

Store operating, selling and administrative expenses

83,927

 

 

4,180

 

 

502

 

 

79,245

 

25.3

 

 

Depreciation and amortization

7,023

 

 

 

 

 

 

7,023

 

2.2

 

 

Operating income

7,793

 

 

4,180

 

 

(262

)

 

11,711

 

3.7

 

 

Interest expense, net

(32

)

 

 

 

 

 

(32

)

 

 

Income before provision for income taxes

7,825

 

 

4,180

 

 

(262

)

 

11,743

 

3.8

 

 

Provision for income taxes

1,824

 

 

975

 

 

(61

)

 

2,738

 

0.9

 

 

Net income

$

6,001

 

 

$

3,205

 

 

$

(201

)

 

$

9,005

 

2.9

 

%

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.35

 

 

$

0.19

 

 

$

(0.01

)

 

$

0.52

 

 

 

Diluted earnings per share

$

0.34

 

 

$

0.18

 

 

$

(0.01

)

 

$

0.51

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

17,202

 

 

17,202

 

 

17,202

 

 

17,202

 

 

 

Diluted

17,574

 

 

17,574

 

 

17,574

 

 

17,574

 

 

 

 

 

 

 

 

 

 

 

 

 

1) Excluded acquisition amounts during the 13-week period ended February 1, 2020, related to the acquisition of City Gear, LLC consists primarily of contingent earnout valuation update and legal, accounting and professional fees in SG&A.

2) Excluded strategic realignment amounts during the 13-week period ended February 1, 2020, related to our accelerated store closure plan consist primarily of gain on operating leases at store closure net of accelerated amortization on ROU assets in COGS and professional fees, impairment costs and loss on fixed assets in SG&A.

 

 

 

 

 

 

 

 

 

 

 

13-Week Period Ended February 2, 2019

 

 

 

Excluded Amounts:

 

 

 

 

GAAP Basis

(As Reported)

 

Acquisition(1)

 

Severance Costs(2)

 

Non-GAAP Basis

(As Adjusted)

February 2, 2019

 

 

 

 

 

 

 

 

 

% of

Sales

 

Net sales

$

305,964

 

 

$

 

 

$

 

 

$

305,964

 

 

 

Cost of goods sold

210,865

 

 

1,911

 

 

 

 

208,954

 

68.3

 

%

Gross margin

95,099

 

 

1,911

 

 

 

 

97,010

 

31.7

 

 

Store operating, selling and administrative expenses

77,932

 

 

2,771

 

 

289

 

 

74,872

 

24.5

 

 

Depreciation and amortization

8,204

 

 

 

 

 

 

8,204

 

2.7

 

 

Operating income

8,963

 

 

4,682

 

 

289

 

 

13,934

 

4.6

 

 

Interest expense, net

371

 

 

 

 

 

 

371

 

0.1

 

 

Income before provision for income taxes

8,592

 

 

4,682

 

 

289

 

 

13,563

 

4.4

 

 

Provision for income taxes

1,958

 

 

1,067

 

 

66

 

 

3,091

 

1.0

 

 

Net income

$

6,634

 

 

$

3,615

 

 

$

223

 

 

$

10,472

 

3.4

 

%

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.36

 

 

$

0.20

 

 

$

0.01

 

 

$

0.57

 

 

 

Diluted earnings per share

$

0.36

 

 

$

0.20

 

 

$

0.01

 

 

$

0.57

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

18,290

 

 

18,290

 

 

18,290

 

 

18,290

 

 

 

Diluted

18,470

 

 

18,470

 

 

18,470

 

 

18,470

 

 

 

 

 

 

 

 

 

 

 

 

 

1) Excluded acquisition amounts during the 13-week period ended February 2, 2019, related to the acquisition of City Gear, LLC consists primarily of amortization of inventory fair-market value step-up in COGS and legal, accounting and professional fees in SG&A.

2) Excluded severance costs incurred during the 13-week period ended February 2, 2019, related to elimination of 30 positions to streamline operations.

HIBBETT SPORTS, INC. AND SUBSIDIARIES

GAAP to Non-GAAP Reconciliation (Dollars in thousands, except per share amounts) (Unaudited)

 

52-Week Period Ended February 1, 2020

 

 

 

Excluded Amounts:

 

 

 

 

 

GAAP Basis

(As Reported)

 

Acquisition(1)

 

Strategic Realignment(2)

 

Non-GAAP Basis

(As Adjusted)

February 1, 2020

 

 

 

 

 

 

 

 

 

 

% of

Sales

 

 

Net sales

$

1,184,234

 

 

$

 

 

$

 

 

$

1,184,234

 

 

 

 

Cost of goods sold

800,783

 

 

956

 

 

(1,120

)

 

800,947

 

67.6

 

%

 

Gross margin

383,451

 

 

956

 

 

(1,120

)

 

383,287

 

32.4

 

 

 

Store operating, selling and administrative expenses

318,011

 

 

17,432

 

 

2,031

 

 

298,548

 

25.2

 

 

 

Depreciation and amortization

29,323

 

 

 

 

 

 

29,323

 

2.5

 

 

 

Operating income

36,117

 

 

18,388

 

 

911

 

 

55,416

 

4.7

 

 

 

Interest expense, net

(211

)

 

 

 

 

 

(211

)

 

 

 

Income before provision for income taxes

36,328

 

 

18,388

 

 

911

 

 

55,627

 

4.7

 

 

 

Provision for income taxes

8,984

 

 

4,547

 

 

225

 

 

13,756

 

1.2

 

 

 

Net income

$

27,344

 

 

$

13,841

 

 

$

686

 

 

$

41,871

 

3.5

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

1.54

 

 

$

0.78

 

 

$

0.04

 

 

$

2.36

 

 

 

 

Diluted earnings per share

$

1.52

 

 

$

0.77

 

 

$

0.04

 

 

$

2.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

17,746

 

 

17,746

 

 

17,746

 

 

17,746

 

 

 

 

Diluted

17,957

 

 

17,957

 

 

17,957

 

 

17,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1) Excluded acquisition amounts during the 52-week period ended February 1, 2020, related to the acquisition of City Gear, LLC consist primarily of the amortization of inventory fair-market value step-up in COGS and contingent earnout valuation update, legal, accounting and professional fees in SG&A.

2) Excluded strategic realignment amounts during the 52-week period ended February 1, 2020, related to our accelerated store closure plan consist primarily of gain on operating leases at store closure net of accelerated amortization on ROU assets in COGS and professional fees, impairment costs and loss on fixed assets in SG&A.

 

 

 

 

 

 

 

 

 

 

 

 

52-Week Period Ended February 2, 2019

 

 

 

Excluded Amounts:

 

 

 

 

 

GAAP Basis

(As Reported)

 

Acquisition(1)

 

Severance Costs(2)

 

Non-GAAP Basis

(As Adjusted)

February 2, 2019

 

 

 

 

 

 

 

 

 

 

% of

Sales

 

 

Net sales

$

1,008,682

 

 

$

 

 

$

 

 

$

1,008,682

 

 

 

 

Cost of goods sold

679,947

 

 

1,911

 

 

 

 

678,036

 

67.2

 

%

 

Gross margin

328,735

 

 

1,911

 

 

 

 

330,646

 

32.8

 

 

 

Store operating, selling and administrative expenses

264,142

 

 

4,299

 

 

289

 

 

259,554

 

25.7

 

 

 

Depreciation and amortization

27,052

 

 

 

 

 

 

27,052

 

2.7

 

 

 

Operating income

37,541

 

 

6,210

 

 

289

 

 

44,040

 

4.4

 

 

 

Interest expense, net

(17

)

 

 

 

 

 

(17

)

 

 

 

Income before provision for income taxes

37,558

 

 

6,210

 

 

289

 

 

44,057

 

4.4

 

 

 

Provision for income taxes

9,137

 

 

1,511

 

 

70

 

 

10,718

 

1.1

 

 

 

Net income

$

28,421

 

 

$

4,699

 

 

$

219

 

 

$

33,339

 

3.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

1.52

 

 

$

0.25

 

 

$

0.01

 

 

$

1.79

 

 

 

 

Diluted earnings per share

$

1.51

 

 

$

0.25

 

 

$

0.01

 

 

$

1.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

18,644

 

 

18,644

 

 

18,644

 

 

18,644

 

 

 

 

Diluted

18,826

 

 

18,826

 

 

18,826

 

 

18,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1) Excluded acquisition amounts during the 52-week period ended February 2, 2019, related to the acquisition of City Gear, LLC consists primarily of amortization of inventory fair-market value step-up in COGS and legal, accounting and professional fees in SG&A.

2) Excluded severance costs incurred during the 52-week period ended February 2, 2019, related to elimination of 30 positions to streamline operations.

Contacts

Scott Humphrey

Interim Chief Financial Officer

(205) 942-4292

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